We present an observational study of the formation and disappearance of a funnel prominence. Before the funnel prominence formed, cool materials from the top of a preexisting polar crown prominence flowed along saddle-shaped coronal loops to their base, forming a smaller prominence. Meanwhile, the saddle-shaped coronal loops gradually rose, and U-shaped coronal loops, termed prominence horns, began to appear along with a coronal cavity. Afterward, a cool column emerged from the chromosphere, rose vertically into the corona, and then moved laterally to be transported into the U-shaped coronal loops. The formed prominence slid into the chromosphere, while the U-shaped coronal loops and the coronal cavity became more pronounced. As cool materials accumulated at the base of the U-shaped coronal loops, these loops underwent a significant descent and a V-shaped structure appeared at the base of the cool materials, indicating that the U-shaped coronal loops may be dragged down to sag. Subsequently, cool materials from the V-shaped structure continued to flow almost vertically toward the chromosphere, forming the funnel prominence. The vertical downflows might be produced by magnetic reconnection within or between the sagging field lines. Due to persistent vertical downflows, the U-shaped coronal loops were lifted up and prominence materials followed along inclined coronal loops toward the chromosphere, causing the funnel prominence to disappear. Our observations suggest that chromospheric plasma transported into a coronal cavity and then drained out via vertical downflows can form a funnel prominence.